SCS tensions won't derail Phl economy - Balisacan

The current tensions in the South China Sea will not derail the Philippine economy, Economic Planning Secretary Arsenio Balisacan said on Thursday.

Balisacan said this in an interview with reporters as the government reported first-quarter growth of 5.7 percent, which is higher than the downward-revised 5.5% in the fourth quarter of 2023.

However, government data showed that there was a 20 percent decline in imports from the Philippines' top sources - including China - last March, raising concerns about potential economic fallout.

The Philippines is one of several Southeast Asian nations locked in territorial disputes with China over the South China Sea, a region believed to be rich in natural resources. The issue has raised concerns about potential disruptions to trade and investment.

"We don't know who was affected," Balisacan said, highlighting the difficulty in attributing the decline solely to tensions in the South China Sea.

The Secretary pointed to Vietnam and Malaysia as examples of countries successfully decoupling political tensions from economic activity.

Both nations, Balisacan noted, have managed to maintain economic growth despite regional disputes.

However, Balisacan refrained from definitively stating whether the Philippines could achieve similar economic isolation.

He emphasized the importance of economic decision-making based on purely economic factors, leaving political matters to national leaders.

"The economy should strictly govern on an economic basis," Balisacan concluded. "They [leaders] know better than us."